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Today, the Price of Peanuts Increases

Question 188

Multiple Choice

Today, the price of peanuts increases. Peanut butter producers and peanut butter consumers expect that the price of peanut butter will rise in the future. In the current market for peanut butter, the equilibrium price rises and the equilibrium quantity increases. It must be the case that


A) the supply of peanut buttered decreased by more than the demand for peanut butter increased.
B) the supply of peanut butter decreased by more than the demand for peanut butter decreased.
C) the demand for peanut butter increased by more than the supply of peanut butter decreased.
D) the demand for peanut butter increased by more than the supply of peanut butter increased.
E) peanut butter producers and peanut butter consumers have incorrect expectations.

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